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Books
• Operations Research – An Introduction :
Taha (PHI)
• Operations Research – Theory and
Operations Research : An Applications : J. K. Sharma (Macmillan)
Overview • Introduction to Operations Research : Hillier,
Lieberman (TMH)
Mr. P. Ghosal • Operations Research : P.K.Gupta, D.S.Hira
Department of Information Technology (S.Chand)
Bengal Engineering & Science University, Shibpur
PO Botanic Garden, Howrah 711103, WB, India • An Introduction to Operational Research :
C.R.Kothari (Vikas Publications)
Wednesday, February 14, 2007 • Operations Research – Methods and Practice
: C.K.Mustafi (New Age)

P. Ghosal, Department of IT, BESUS February 14, 2007 P. Ghosal, Department of IT, BESUS 2

Introduction Development of O.R.

• Modern technological advance
growth of • Developed in military context during world
scientific techniques war II, pioneered by the British scientists
• Operations Research (O.R.)
recent addition – Research on military operations
to scientific tools • US military management was motivated
• O.R.
new outlook to many conventional – Development of new flight pattern
management problems – Planning sea mining
• Seeks the determination of best (optimum) – Effective utilization of electronic equipment
course of action of a decision problem under • Similar operations in Canada and France
the limiting factor of limited resources • Till 50’s: use of O.R. confined to military
purposes

February 14, 2007 P. Ghosal, Department of IT, BESUS 3 February 14, 2007 P. Ghosal, Department of IT, BESUS 4

O.R. in Industry What is O.R.?

• After World War II: success attracted • Operational Research can be considered as
industrial managers to solve complex being the application of scientific method by
managerial problems inter-disciplinary teams to problems
• 1950: O.R. began to develop in industrial field involving the control of organized (man-
in US machine) systems so as to provide solutions
• 1953: Operations Research Society of America which best serve the purposes of the
was formed organization as a whole.
• 1957: International Federation of Operational
Research Society

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Nature of O.R.: Characteristics Phases of O.R. study

• Inter-disciplinary team approach • Judgment phase
– Determination of the problem
• Systems approach – Establishment of the objectives and values
• Helpful in improving the quality of solution – Determination of suitable measures of effectiveness
• Scientific method • Research phase
– Observation and data collection
• Goal oriented optimum solution – Formulation of hypothesis and models
• Use of models – Observation and experimentation to test the hypothesis
• Require willing executives – Prediction of various results, generalization, consideration of
alternative method
• Reduces complexity • Action phase
– Implementation of the tested results of the model

February 14, 2007 P. Ghosal, Department of IT, BESUS 7 February 14, 2007 P. Ghosal, Department of IT, BESUS 8

Methodology of O.R. O.R. Approach

Information needs
Define the problem
• Formulating the problem Facts, opinions
& symptoms of
• Constructing the model the problem
Determine factors Model Tools of
affecting the problem development trade
• Deriving the solution (variables, constraints
Technical, and assumptions)
– Analytical method Maximize O.R.
financial and
or techniqu
economic
– Numerical method Develop objective and minimize es
information
alternative solutions some
– Simulation method from all sources
function
• Testing the validity Analyze alternatives and
Detailed deriving optimum
• Controlling the solution information on solution Computer
factors service
• Implementing the result (may be
Determination of
validity, recommend used)
action, control and
implementation

February 14, 2007 P. Ghosal, Department of IT, BESUS 9 February 14, 2007 P. Ghosal, Department of IT, BESUS 10

Problems in O.R. O.R. techniques

• Allocation • Linear programming
• Replacement • Waiting line or queuing theory
• Sequencing • Inventory control / planning
• Routing • Game theory
• Inventory • Decision theory
• Queuing • Network analysis
• Competitive – Program Evaluation and Review Technique
(PERT)
• Search
– Critical Path Method (CPM) etc.
• Simulation
• Integrated production models
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Other O.R. techniques Significance of O.R.

• Non-linear programming • Provides a tool for scientific analysis
• Dynamic programming • Provides solution for various business problems
• Enables proper deployment of resources
• Heuristic programming
• Helps in minimizing waiting and servicing costs
• Integer programming • Enables the management to decide when to buy and
• Algorithmic programming how much to buy?
• Quadratic programming • Assists in choosing an optimum strategy
• Parametric programming • Renders great help in optimum resource allocation
• Facilitates the process of decision making
• Probabilistic programming
• Management can know the reactions of the integrated
• Search theory business systems
• Theory of replacement • Helps a lot in the preparation of future managers

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Limitations of O.R.
• The inherent limitations concerning mathematical
expressions
• High costs are involved in the use of O.R. techniques
• O.R. does not take into consideration the intangible
factors
• O.R. is only a tool of analysis and not the complete
decision-making process
• Other limitations
– Bias
– Inadequate objective functions
– Internal resistance
– Competence
– Reliability of the prepared solution

February 14, 2007 P. Ghosal, Department of IT, BESUS 15